Military Heritage Museum faces foreclosure

Displays showcase donated military items in this June 2013 photo taken inside the Military Heritage Museum & Education Center. According to court documents, such items may be taken by the bank as part of foreclosure proceedings.(Photo: Sheboygan Press Media file photo)

Less than a year after its grand opening, the Military Heritage Museum and Education Center in Sheboygan may be in foreclosure, owing more than $334,000 to Bank First National.

A hearing is scheduled for Monday morning in Sheboygan County Circuit Court before Judge L. Edward Stengel.

Pending the judge's ruling, the museum, which is housed in the former Alliant Energy building just south of downtown, will owe the bank a principal sum of $316,728 in unpaid mortgage since April 2, plus more than $17,300 in interest and other fees, according to court records.

If Stengel issues a judgment in the bank's favor, the bank will be entitled to take possession of "all equipment, fixtures, inventory and documents." It is unclear whether that includes the museum's exhibits, many of which are military items and memorabilia donated by local families and other individuals.

The museum, which is operated by the Wisconsin Naval Ship Association (WINSA), has six months after Monday's hearing to pay what's due. After that, the building and its items will go to public auction.

Bank First National's attorney filed the motion for foreclosure in early June. After the filing, Military Heritage Museum officials failed to appear in court or file a response.

Larry Hinkelman, executive director of the museum and president of the WINSA board, did not return calls or emails seeking comment.

The museum had its grand opening in August of last year, more than two years after the group purchased the building for $400,000. It opened briefly in 2012, but closed when its parking lot became a drying station for the Sheboygan River dredging project.

WINSA also had plans to bring the USS Canon, a Vietnam-era gunboat, to the Sheboygan River, but those plans fizzled after the Navy questioned the museum's ability to provide the $80,000 per year needed to maintain the ship.

The group had looked at two other ships prior to that, but area residents objected, saying the vessels were too large for the site.

The museum's website advertises an upcoming golf outing fundraiser Saturday, Aug. 16, as well as a Veterans' Fishing Day and Brat Fry on Saturday, Aug. 23.